CPF Contribution And Allocation Rates

Contributions to the Central Provident Fund (CPF) are decided by the government. The rates are usually reviewed every year and announced during the Budget presentation, but are subject to change any time of the year depending on the economic situation. Each party associated with the CPF has a set of responsibilities, which are:

The government has to ensure that the CPF savings remain safe from economic changes and that the citizens do not lose their money.

The employer has the onus of deducting mandatory contributions from the employee’s wages and to put in their own contribution. An employer can also put in a higher amount than mandated under the Voluntary Contribution scheme.

The employee has to do practically nothing in this scenario, as the employer takes care of determining the contribution amount, the deduction of the amount and depositing it into the CPF accounts. However, an employee can choose to make voluntary contributions, apart from the mandated levels, towards his own CPF account.

Types Of Contributions:

CPF contributions can be divided into 2 kinds:

Mandatory contributions: This is the contribution that is declared as compulsory, by the government, based on the estimated monetary requirements of individuals after retirement. The contribution rates are reviewed every year and could be revised as a result of changes in the economy.

Voluntary contributions: This is the contribution that is over and above the mandatory contributions, and can be made by both the employer and employee. Voluntary contributions, as the title proclaims, are volunteered by the parties concerned and not forced upon them by anyone. There is no set contribution amount or percentage for voluntary contributions, but the total limit set on CPF contributions (mandatory and voluntary combined) have to be respected.

The rate of contribution depends on an employee’s wages, their age, citizenship status, the sector they’re working in, and the kind of employment/contribution package.

Mandatory Contribution Rates:

The contribution rates applicable from January 1, 2016 for various categories of employees are given in 10 tables below for clarity.

Singapore Permanent Residents (SPR) from the 3rd year of getting PR status

SPR during the first 2 years of obtaining SPR status, who have jointly applied with employer to contribute at full employer-full employee rates

Employee’s age

Employee’s monthly wages

Contribution rates (in %)

By employer

By employee

Total

55 years or less

Less than or equal to S$50

Nil

Nil

Nil

S$50 to S$500

17

Nil

17

S$500 to S$750

17

0.6

17.6

More than S$750

17

20

37

Age 55 to 60

Less than or equal to S$50

Nil

Nil

Nil

S$50 to S$500

13

Nil

13

S$500 to S$750

13

0.39

13.39

More than S$750

13

13

26

Age 60 to 65

Less than or equal to S$50

Nil

Nil

Nil

S$50 to S$500

9

Nil

9

S$500 to S$750

9

0.225

9.225

More than S$750

9

7.5

16.5

Above 65 years

Less than or equal to S$50

Nil

Nil

Nil

S$50 to S$500

7.5

Nil

7.5

S$500 to S$750

7.5

0.15

7.65

More than S$750

7.5

5

12.5

Table 2: Graduated Employer & Employee (G/G) Contribution rates for private and public sector non-pensionable employees for SPRs during the first year of SPR status:

Employee’s age

Employee’s monthly wages

Contribution rates (in %)

By employer

By employee

Total

55 years or less

Less than or equal to S$50

Nil

Nil

Nil

S$50 to S$500

4

Nil

4

S$500 to S$750

4

0.15

4.15

More than S$750

4

5

9

Age 55 to 60

Less than or equal to S$50

Nil

Nil

Nil

S$50 to S$500

4

Nil

4

S$500 to S$750

4

0.15

4.15

More than S$750

4

5

9

Age 60 to 65

Less than or equal to S$50

Nil

Nil

Nil

S$50 to S$500

3.5

Nil

3.5

S$500 to S$750

3.5

0.15

3.65

More than S$750

3.5

5

8.5

Above 65 years

Less than or equal to S$50

Nil

Nil

Nil

S$50 to S$500

3.5

Nil

3.5

S$500 to S$750

3.5

0.15

3.65

More than S$750

3.5

5

8.5

Table 3: Graduated Employer & Employee (G/G) Contribution rates for private and public sector non-pensionable employees for SPRs during the second year of SPR status:

Employee’s age

Employee’s monthly wages

Contribution rates (in %)

By employer

By employee

Total

55 years or less

Less than or equal to S$50

Nil

Nil

Nil

S$50 to S$500

9

Nil

9

S$500 to S$750

9

0.45

9.45

More than S$750

9

15

24

Age 55 to 60

Less than or equal to S$50

Nil

Nil

Nil

S$50 to S$500

6

Nil

6

S$500 to S$750

6

0.375

6.375

More than S$750

6

12.5

18.5

Age 60 to 65

Less than or equal to S$50

Nil

Nil

Nil

S$50 to S$500

3.5

Nil

3.5

S$500 to S$750

3.5

0.225

3.725

More than S$750

3.5

7.5

11

Above 65 years

Less than or equal to S$50

Nil

Nil

Nil

S$50 to S$500

3.5

Nil

3.5

S$500 to S$750

3.5

0.15

3.65

More than S$750

3.5

5

8.5

Table 4: Full Employer & Graduated Employee (F/G) Contribution rates for private and public sector non-pensionable employees for SPRs during the first year of SPR status:

Employee’s age

Employee’s monthly wages

Contribution rates (in %)

By employer

By employee

Total

55 years or less

Less than or equal to S$50

Nil

Nil

Nil

S$50 to S$500

17

Nil

17

S$500 to S$750

17

0.15

17.15

More than S$750

17

5

22

Age 55 to 60

Less than or equal to S$50

Nil

Nil

Nil

S$50 to S$500

13

Nil

13

S$500 to S$750

13

0.15

13.15

More than S$750

13

5

18

Age 60 to 65

Less than or equal to S$50

Nil

Nil

Nil

S$50 to S$500

9

Nil

9

S$500 to S$750

9

0.15

9.15

More than S$750

9

5

14

Above 65 years

Less than or equal to S$50

Nil

Nil

Nil

S$50 to S$500

7.5

Nil

7.5

S$500 to S$750

7.5

0.15

7.65

More than S$750

7.5

5

12.5

Table 5: Full Employer & Graduated Employee (F/G) Contribution rates for private and public sector non-pensionable employees for SPRs during the second year of SPR status:

Employee’s age

Employee’s monthly wages

Contribution rates (in %)

By employer

By employee

Total

55 years or less

Less than or equal to S$50

Nil

Nil

Nil

S$50 to S$500

17

Nil

17

S$500 to S$750

17

0.45

17.45

More than S$750

17

15

32

Age 55 to 60

Less than or equal to S$50

Nil

Nil

Nil

S$50 to S$500

13

Nil

13

S$500 to S$750

13

0.375

13.375

More than S$750

13

12.5

25.5

Age 60 to 65

Less than or equal to S$50

Nil

Nil

Nil

S$50 to S$500

9

Nil

9

S$500 to S$750

9

0.225

9.225

More than S$750

9

7.5

16.5

Above 65 years

Less than or equal to S$50

Nil

Nil

Nil

S$50 to S$500

7.5

Nil

7.5

S$500 to S$750

7.5

0.15

7.65

More than S$750

7.5

5

12.5

Table 6: Contribution rate for Singapore citizens and SPRs (third year onwards) who are public sector pensionable employees for pensionable wage component only:

Employee’s age

Contribution by employer (in %)

Contribution by employee (in %)

Total contribution (in %)

55 years or less

12.75

15

27.75

Age 55 to 60

9.75

9.75

19.5

Age 60 to 65

6.75

5.625

12.375

Above 65 years

5.625

3.75

9.375

Table 7: Contribution rate for Singapore citizens and SPRs (third year onwards) who are public sector pensionable employees for pensionable and non-pensionable wage components:

Employee’s age

Contribution by employer

Contribution by employee

Total contribution

55 years or less

[12.75% (OW - NPE) + 17% (NPE)] + 17% (AW)

[15% (OW - NPE) + 20% (NPE)] + 20% (AW)

[27.75% (OW - NPE) + 37% (NPE)] + 37% (AW)

Age 55 to 60

[9.75 (OW - NPE) + 13% (NPE)] + 13% (AW)

[9.75% (OW - NPE) + 13% (NPE)] + 13% (AW)

[19.5% (OW - NPE) + 26% (NPE)] + 26% (AW)

Age 60 to 65

[6.75% (OW - NPE) + 9% (NPE)] + 9% (AW)

[5.625% (OW - NPE) + 7.5% (NPE)] + 7.5% (AW)

[12.375% (OW - NPE) + 16.5% (NPE)] + 16.5% (AW)

Above 65 years

[5.625% (OW - NPE) + 7.5% (NPE)] + 7.5% (AW)

[3.75% (OW - NPE) + 5% (NPE)] + 5% (AW)

[9.375% (OW - NPE) + 12.5% (NPE)] + 12.5% (AW)

OW = Ordinary Wages

NPE = Non-Pensionable Element

AW = Additional Wages

Table 8: Graduated Employer & Employee (G/G) Contribution rates for public sector pensionable employees for SPRs during the first year of SPR status:

Employee’s age

Contribution by employer

Contribution by employee

Total contribution

55 years or less

[3% (OW - NPE) + 8% (NPE)] + 8% (AW)

[3.75% (OW - NPE) + 5% (NPE)] + 5% (AW)

[6.75% (OW - NPE) + 9% (NPE)] + 9% (AW)

Age 55 to 60

[3% (OW - NPE) + 4% (NPE)] + 4% (AW)

[3.75% (OW - NPE) + 5% (NPE)] + 5% (AW)

[6.75% (OW - NPE) + 9% (NPE)] + 9% (AW)

Age 60 to 65

[2.625% (OW - NPE) + 3.5% (NPE)] + 3.5% (AW)

[3.75% (OW - NPE) + 5% (NPE)] + 5% (AW)

[6.375% (OW - NPE) + 8.5% (NPE)] + 8.5% (AW)

Above 65 years

[2.625% (OW - NPE) + 3.5% (NPE)] + 3.5% (AW)

[3.75% (OW - NPE) + 5% (NPE)] + 5% (AW)

[6.375% (OW - NPE) + 8.5% (NPE)] + 8.5% (AW)

Table 9: Graduated Employer & Employee (G/G) Contribution rates for public sector pensionable employees for SPRs during the second year of SPR status:

Employee’s age

Contribution by employer

Contribution by employee

Total contribution

55 years or less

[6.75% (OW - NPE) + 9% (NPE)] + 9% (AW)

[11.25% (OW - NPE) + 15% (NPE)] + 15% (AW)

[18% (OW - NPE) + 24% (NPE)] + 24% (AW)

Age 55 to 60

[4.5% (OW - NPE) + 6% (NPE)] + 6% (AW)

[9.375% (OW - NPE) + 12.5% (NPE)] + 12.5% (AW)

[13.875% (OW - NPE) + 18.5% (NPE)] + 18.5% (AW)

Age 60 to 65

[2.625% (OW - NPE) + 3.5% (NPE)] + 3.5% (AW)

[5.625% (OW - NPE) + 7.5% (NPE)] + 7.5% (AW)

[8.25% (OW - NPE) + 11% (NPE)] + 11% (AW)

Above 65 years

[2.625% (OW - NPE) + 3.5% (NPE)] + 3.5% (AW)

[3.75% (OW - NPE) + 5% (NPE)] + 5% (AW)

[6.375% (OW - NPE) + 8.5% (NPE)] + 8.5% (AW)

Table 10: Full Employer & Graduated Employee (F/G) Contribution rates for public sector pensionable employees for SPRs during the first year of SPR status:

Employee’s age

Contribution by employer

Contribution by employee

Total contribution

55 years or less

[12.75% (OW - NPE) + 17% (NPE)] + 17% (AW)

[3.75% (OW - NPE) + 5% (NPE)] + 5% (AW)

[16.5% (OW - NPE) + 22% (NPE)] + 22% (AW)

Age 55 to 60

[9.75% (OW - NPE) + 13% (NPE)] + 13% (AW)

[3.75% (OW - NPE) + 5% (NPE)] + 5% (AW)

[13.5% (OW - NPE) + 18% (NPE)] + 18% (AW)

Age 60 to 65

[6.75% (OW - NPE) + 9% (NPE)] + 9% (AW)

[3.75% (OW - NPE) + 5% (NPE)] + 5% (AW)

[10.5% (OW - NPE) + 14% (NPE)] + 14% (AW)

Above 65 years

[5.625% (OW - NPE) + 7.5% (NPE)] + 7.5% (AW)

[3.75% (OW - NPE) + 5% (NPE)] + 5% (AW)

[9.375% (OW - NPE) + 12.5% (NPE)] + 12.5% (AW)

Table 11: Full Employer & Graduated Employee (F/G) Contribution rates for public sector pensionable employees for SPRs during the second year of SPR status:

Employee’s age

Contribution by employer

Contribution by employee

Total contribution

55 years or less

[12.75% (OW - NPE) + 17% (NPE)] + 17% (AW)

[11.25% (OW - NPE) + 15% (NPE)] + 15% (AW)

[24% (OW - NPE) + 32% (NPE)] + 32% (AW)

Age 55 to 60

[9.75% (OW - NPE) + 13% (NPE)] + 13% (AW)

[9.375% (OW - NPE) + 12.5% (NPE)] + 12.5% (AW)

[19.125% (OW - NPE) + 25.5% (NPE)] + 25.5% (AW)

Age 60 to 65

[6.75% (OW - NPE) + 9% (NPE)] + 9% (AW)

[5.625% (OW - NPE) + 7.5% (NPE)] + 7.5% (AW)

[12.375% (OW - NPE) + 16.5% (NPE)] + 16.5% (AW)

Above 65 years

[5.625% (OW - NPE) + 7.5% (NPE)] + 7.5% (AW)

[3.75% (OW - NPE) + 5% (NPE)] + 5% (AW)

[9.375% (OW - NPE) + 12.5% (NPE)] + 12.5% (AW)

To make it easy for employers to compute the contribution rates, the CPF website has detailed contribution rate booklets that lists the exact amount you need to put as employer’s contribution and the deduction you need to make from an employee’s salary as per their wage and age groups. Apart from this, CPF Contribution Calculator is also available.

Contribution Limits:

Though a percentage of wages is decided as contribution, the government has also set a ceiling on the contribution amount, in order to reduce the burden on employers and employees alike. For example, it is not very difficult for an employer to contribute 17% of an employee’s monthly salary of S$5,000, which may come around to S$850 per month. However, if an employee’s salary is S$12,000, then the monthly cost of employer would be about S$2,050.

The amount limits imposed on various CPF contributions are as mentioned below. (If no ceiling is specified, it means that there exists no ceiling for the category.)

Additional wage ceiling for contribution: S$102,000 for the whole year

Table 1: Private and public sector non-pensionable employees; Singapore citizens or SPR from third year onwards on salaries above S$750:

Category

Maximum contribution

For employer

For employee

Total

Aged up to 55 years

S$1,020

S$1,200

S$2,220

Above 55 to 60 years

S$780

S$780

S$1,560

Above 60 to 65 years

S$540

S$450

S$990

Above 65 years

S$450

S$300

S$750

Table 2: Private and public sector non-pensionable employees with salaries above S$750 under Graduated Employer & Employee (G/G) category for SPRs in their first year:

Category

Maximum contribution

For employer

For employee

Total

Aged up to 55 years

S$240

S$300

S$540

Above 55 to 60 years

S$240

S$300

S$540

Above 60 to 65 years

S$210

S$300

S$510

Above 65 years

S$210

S$300

S$510

Table 3: Private and public sector non-pensionable employees with salaries above S$750 under Graduated Employer & Employee (G/G) category for SPRs in their second year:

Category

Maximum contribution

For employer

For employee

Total

Aged up to 55 years

S$540

S$900

S$1,440

Above 55 to 60 years

S$360

S$750

S$1,110

Above 60 to 65 years

S$210

S$450

S$660

Above 65 years

S$210

S$300

S$510

Table 4: Private and public sector non-pensionable employees with salaries above S$750 under Full Employer & Graduated Employee (F/G) category for SPRs in their first year:

Category

Maximum contribution

For employer

For employee

Total

Aged up to 55 years

S$1,020

S$300

S$1,320

Above 55 to 60 years

S$780

S$300

S$1,080

Above 60 to 65 years

S$540

S$300

S$840

Above 65 years

S$450

S$300

S$750

Table 5: Private and public sector non-pensionable employees with salaries above S$750 under Full Employer & Graduated Employee (F/G) category for SPRs in their second year:

Category

Maximum contribution

For employer

For employee

Total

Aged up to 55 years

S$1,020

S$900

S$1,920

Above 55 to 60 years

S$780

S$750

S$1,530

Above 60 to 65 years

S$540

S$450

S$990

Above 65 years

S$450

S$300

S$750

Table 6: Public sector pensionable employees; Singapore citizens or SPR from third year onwards on any amount of salary:

Category

Maximum contribution

For employer

For employee

Total

Aged up to 55 years

S$1,020

S$1,200

S$2,220

Above 55 to 60 years

S$780

S$780

S$1,560

Above 60 to 65 years

S$540

S$450

S$990

Above 65 years

S$450

S$300

S$750

Table 7: Public sector pensionable employees under Graduated Employer & Employee (G/G) category for SPRs in their first year:

Category

Maximum contribution

For employer

For employee

Total

Aged up to 55 years

S$240

S$300

S$540

Above 55 to 60 years

S$240

S$300

S$540

Above 60 to 65 years

S$210

S$300

S$510

Above 65 years

S$210

S$300

S$510

Table 8: Public sector pensionable employees under Graduated Employer & Employee (G/G) category for SPRs in their second year:

Category

Maximum contribution

For employer

For employee

Total

Aged up to 55 years

S$540

S$900

S$1,440

Above 55 to 60 years

S$360

S$750

S$1,110

Above 60 to 65 years

S$210

S$450

S$660

Above 65 years

S$210

S$300

S$510

Table 9: Public sector pensionable employees under Full Employer & Graduated Employee (F/G) category for SPRs in their first year:

Category

Maximum contribution

For employer

For employee

Total

Aged up to 55 years

S$1,020

S$300

S$1,320

Above 55 to 60 years

S$780

S$300

S$1,080

Above 60 to 65 years

S$540

S$300

S$840

Above 65 years

S$450

S$300

S$750

Table 10: Public sector pensionable employees under Full Employer & Graduated Employee (F/G) category for SPRs in their second year:

Category

Maximum contribution

For employer

For employee

Total

Aged up to 55 years

S$1,020

S$900

S$1,920

Above 55 to 60 years

S$780

S$750

S$1,530

Above 60 to 65 years

S$540

S$450

S$990

Above 65 years

S$450

S$300

S$750

Allocation Rates:

Your CPF contributions are allocated in the following manner:

Retirement Account starts getting allotment from your 55th birthday onwards. Allocation rates change as you grow older, with more provisions made for medical emergencies and retirement benefits. The actual allocation rates are as given in the 2 tables below:

Table 1: For private and public sector non-pensionable employees:

Employee’s age

Allocation rates for salary more the S$750 per month

OA (% of wage)

SA (% of wage)

MA (% of wage)

35 years and less

23

6

8

Between 35 to 45 years

21

7

9

Between 45 to 50 years

19

8

10

Between 50 to 55 years

15

11.5

10.5

Between 55 to 60 years

12

3.5

10.5

Between 60 to 65 years

3.5

2.5

10.5

Above 65 years

1

1

10.5

Table 2: For public sector pensionable employees:

Employee’s age

Allocation rates for pensionable component

OA (% of wage)

SA (% of wage)

MA (% of wage)

35 years and less

17.25

4.5

6

Between 35 to 45 years

15.75

5.25

6.75

Between 45 to 50 years

14.25

6

7.5

Between 50 to 55 years

11.25

8.625

7.875

Between 55 to 60 years

9

2.625

7.875

Between 60 to 65 years

3

1.875

7.5

Above 65 years

0.75

0.75

7.875

Rates For Voluntary Contribution:

Voluntary contributions, meaning extra contributions to the CPF account of your volition apart from the fixed rate, can be done by both employees and employers. Though there is no fixed percentage of voluntary contribution that can be made, it is governed by the CPF Annual Limit. This is the maximum amount that can be deposited in all 3 CPF accounts in 1 year. The current CPF Annual Limit is S$37,740, so any voluntary contribution has to be CPF Annual Limit minus mandatory contribution. For example, with the current maximum mandatory contribution being S$2,220 per month, it comes up to S$26,640 in a year. This means that your voluntary contribution cannot exceed S$11,100 (S$925 per month) if you are depositing the maximum mandatory contribution to your account already.

As an employer, you can choose to make any of the 2 kinds of voluntary contributions: either to all 3 CPF accounts, or only to Medisave Account. There is also an option for employers to add money only to your Medisave Account through the Additional Medisave Contribution Scheme. This scheme can be used to enrol an employee in the Portable Medical Benefits Scheme. The maximum amounts and its taxability is as given below:

Types of VC

Maximum amount of VC

Tax deductions

To all 3 CPF Accounts

CPF Annual Limit minus Mandatory Contributions

Taxable for both employers and employees

To Medisave Account only via the Additional Medisave Contribution Scheme

$1,500 per employee per year This VC is apart from the CPF Annual Limit or Basic Healthcare Sum

Tax-free for employees and tax benefits for employers

Employees’ voluntary contribution to Medisave Account is subject to the CPF Annual Limit or the Basic Healthcare Sum, whichever is lower. They can also choose to make contributions to Medisave Account only or all 3 accounts. Any amount that is in excess of the allowed quantum, whether made by the employer or employee, will be refunded without interest.

Other Important Information:

Due Date: An important point to remember with regard to CPF contributions is the due date for depositing the amount in the employee's’ CPF accounts. CPF contributions need to be paid on or before the last day of the calendar month. Employers also get a 14-day grace period. If the last day of the grace period is a Saturday, Sunday or Public Holiday, the payment can be made on the next working day.

How to apply with SPR employees for higher contribution rates: You and an SPR employee with less than 3 years as a permanent resident can jointly apply to get higher CPF contribution rates. To do this, you need to download and fill up the Form CBD/PR/94A and send it via snail mail to:

CPF Board

Collection Business Department

238B Thomson Road

#08-00 Tower B Novena Square

Singapore 307685

How to make voluntary contribution: Employers can apply to make a voluntary contribution for their employees by applying for a separate CPF Submission Number (CSN). After your application is approved and you receive the CSN to make the payment, you can submit the voluntary contribution details and make payment just like you do the mandatory CPF contributions. You need to quote the right CSN for the contributions to avoid confusion.

As an employee, you can make voluntary contribution in any of the following ways:

e-Cashier at CPF Website: A one-time voluntary contribution can be made via e-Cashier using eNETS Debit payment mode. The available banks in this mode are DBS/POSB, UOB, Citibank, OCBC and Standard Chartered Bank.

AXS Station: One-time voluntary contribution can be done at any AXS Station. To make the contribution, select Government=>CPF=>Member/Self-Employed Services=>As Member (Voluntary)/As Self-Employed=>As Member (Voluntary). You can pay via D-pay (ATM cards) or Diners Club Credit Card.

GIRO (for monthly voluntary contribution into all 3 CPF Accounts only): Monthly voluntary contributions into all your CPF Accounts can be made by completing an ‘Apply for GIRO for Mandatory Medisave Contributions or Voluntary Contributions (FORM GIRO SE/VC)’ form. Mention the voluntary contribution you wish to make every month at myCPF Online Services=>My Requests=>GIRO Matters=>Standing Instruction (SI) for Voluntary Contribution. You can also submit ‘Standing Instructions (SI) For Payment of Voluntary Contributions Via GIRO (FORM SI/VC)’ by snail mail.

Cheque Payment: One-time voluntary contribution can also be done through cheque payable to “Central Provident Fund Board”. You also need to attach the completed ‘FORM VC/1’ – Voluntary Contribution for CPF Member. The cheques and forms should be mailed to: Central Provident Fund Board